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Sallie Mae Plans $2.5 Billion Stock Offering

Student-loan titan SLM Corp., seeking to recover from soured bets on its own stock price, said it plans to raise $2.5 billion through public stock offerings.

SLM, commonly called Sallie Mae, said it intends to use $2 billion -- more than investors had been expecting -- to settle its outstanding "equity forward purchase contract." Under that arrangement, Sallie Mae had in recent years committed to buy its own shares at a set...